In the US, tax revenue as a percentage of GDP has been almost exactly 17.7% of GDP since the end of World War II.
It hasn’t mattered how much they’ve raised tax rates; when tax rates go up, overall tax revenue, i.e. the government’s slice of the GDP pie, stays about the same.
For years they’ve been bleeding cash.
Yet rather than say “How can we support abundance?   How can we help set the right conditions to make the PIE bigger,” they punish and intimidate everyone.
The Land of the Free is one of the only supposedly civilized nations in the world where you can be criminally convicted and thrown in jail over tax discrepancies.
Thousands of miles away, Estonia is one of the few countries that gets it.

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The world’s leading silver expert David Morgan joins The Doc & Eric Dubin this week to discuss: 

  • The Fed tapers official QE another $10 billion- gold & silver whacked the day after the FOMC statement yet again
  • David breaks down gold and silver trading over the first half of 2014:  Gold & Silver still base building a Major Bottom
  • Is the next banking crisis beginning? Banco Espírito Santo’s share price halved on  Thursday
  • Be right and sit tight?  David explains why the PM markets will scare you out or wear you out
  • We ask David how he sees the end-game for the dollar playing out- will we see a deflationary crash, or a hyper-inflation monetary collapse,  and how will PMs protect wealth against both?
  • On the Brink?  Washington driving West towards direct conflict with Russia

The SD Weekly Metals & Markets With The Doc, Eric Dubin, and David Morgan is below:

 

Source: WPTV/NBC

Source: WPTV/NBC

Things have changed quite a bit in the “Land of the Free: .  
In modern America, if you are an average citizen you more or less do not have any rights at all, particularly if you are one of those domestic terrorists we calls parents.
Take the recent absurd example of Nicole Gainey, a Florida mom who was arrested for allowing her 7-year-old son walk to a park by himself.
No, this is not from The Onion. 

Gold has been banished from everyday use, and can only be hoarded unproductively.   Gold is going into hiding. 
This is not the first time gold has gone into hiding; gold went into hiding in the days of the collapse of the Roman Empire of the West.
It is going into hiding again, in the present slow-motion financial collapse of the world.
The price of gold will enter a rising trend, no matter how violent the official interventions to control its price, because at the present low prices it will be impossible for the gold market to satisfy demand for gold from a largely silent minority of mankind that wants to own gold.   When this happens, we can expect the criminalization of gold ownership, at least in some quarters of the world.
Gold today has really only one enemy: the Federal Reserve of the US.
I bid you welcome to The New Dark Age.

paintThat was how it felt watching all markets this week until Thursday when they sprang into life.
Gold fell from $1304 at the London opening last Monday to a low point of $1281 yesterday, down 1.8% on the week, while silver fell from $20.60 to $20.35, down only 1.2%.
These moves were relatively small compared with action elsewhere.
Here are the charts showing price and open interest for gold and silver on Comex.

 

fedPeople who were sitting on the board of the NY Fed, were directing some of these bailout funds directly to their own banks in a blatant, absolutely undeniable conflict of interest that again represent the very heart of this system: it is a system run and operated by bankers, for bankers, and in which bankers tend to do very well, while the rest of the country MELTS DOWN.

Screen Shot 2014-07-29 at 1.57.58 PMLast week, I highlighted a series of billboards and painted benches that sprung up overnight in Hollywood as Obama prepared to host a $32,000 a plate fundraiser at the home of Scandal creator Shonda Rhimes.  Naturally, this was merely stop number one on Obama’s oligarch groveling traveling circus.
The next stop on the crony train is another $32,400 a plate fundraiser. This time with none other than Nancy Pelosi.

Fortunately for us, California’s ever creative street artists were right there waiting for him.
This is what they delivered:

Certain places in Europe are definitely worth looking into at the moment. Because aside from attractive prices, there are several good reasons to own foreign real estate.
Owning property is a great way to trade paper currency for something that has real value and can generate long-term income streams. It’s also a great inflation hedge.
More importantly, ownership of foreign property held personally is not a reportable asset for US taxpayers.
This makes property a great way to move and hold savings overseas.
And in many cases (like Spain, Portugal, Latvia, Greece, etc.) purchasing property is rewarded with residency, giving you more freedom and more options in case you decide it’s ever time to get out of dodge.
It’s hard to imagine that someone would be worse off trading paper currency for a beautiful property acquired at less than the cost of construction that is generating significant cash flow and providing an option for tax-free residency in a sunny country overseas.

Less than four weeks after starting his new job, Panama’s President Juan Carlos Varela already has a serious challenge to deal with: empty grocery shelves.
This is largely a self-inflicted wound that was bound to happen.
Fresh on the heels of his victory in May, the then President-elect announced that one of his first orders would be to regulate prices for staple food products.
He followed through on his promise, establishing price controls on certain brands of roughly two dozen items like chicken, rice, eggs, and bread.   And within a matter of weeks, many grocery store shelves are already empty, at least for the regulated items.
It’s not quite Venezuela or Cuba where it can be downright impossible to buy a roll of toilet paper. But it’s more proof that price controls almost always backfire.
The larger issue here is why the Panamanian government is controlling prices to begin with.
The answer is simple: inflation.
So to get a true sense of US dollar inflation… and where it’s headed in the Land of the Free… one only need look at dollarized countries like Panama.

PART 3 pic 1Nothing is as great a danger to gold and silver investors as The Pilgrims Society.
Across the years, not only has The Pilgrims Society, with its twin branches in the world‟s top two international banking districts—London and New York, featured as members, unknown to the gold and silver long community, major price antagonists and opponents of the private ownership thereof, these price suppressors and opposers of monetary metals as money have been in the leadership of The Pilgrims Society.

With great persistence and a little encouragement from GATA our friend R.B. in Britain has more or less solved the mystery of the Financial Times’ quick deletion from its Internet site of its February 24 report about gold market manipulation, “Fears Over Gold Price Rigging Put Investors on Alert; German and UK Regulators Investigate.”
The explanation is pretty much what one might expect: For the Financial Times, one of the many news organizations to which GATA repeatedly has provided its full documentation of gold price suppression by Western central banks – the issue is simply too “sensitive.”

For reasons that have no rational explanations at this time, the US and Europe have embarked on a concerted program to demonize Putin, ostracize Russia, and bring the world as close to a major conflict as it’s been since the Cold War, a time hardly memorable to many in the current crop of our elected officials.   A dangerous dynamic is brewing between the West and Russia/Putin. We are seeing a rush to war very similar to the one that led up to Saddam’s ouster, but this time, we have much less justification (hard to believe) and the opponent is tremendously more capable.
There is little sense in the course the West is currently pursuing, little to gain, and much to lose.
The main conclusion here is that not only is the US poking the bear, but it is doing so with increasing frequency and upping the ante dangerously with each step.

goldThe contributors are many as actors in the American Tragedy, to cause the systemic breakdown failed state.  Faulty monetary policy, economic policy, and political policy have caused the resulting failure.  The primary perpetrators are the central bankers, led by Greenspan and Bernanke.
Refusal to Repatriate German gold was a crime out of the gate. The motive was to conceal the appropriation (re-hypothecation) of German official gold accounts.   The Germans are on notice of gold thefts by their own allies. Germany will work with the Eastern superpowers to develop a USDollar alternative and a Gold Trade Standard.
The United States has given the world two choices: war to defend the USDollar, versus work with Eastern Alliance toward the Gold Standard.
The motive for actions taken are clearly in defense of the King Dollar Regime.   The responses taken are clearly to reinstate the Gold Trade Standard and no longer deal with a toxic USDollar for trade and banking. The unintended consequences are uniform if not universal.
The outcome will be to develop the Eastern Gold Trade Standard while the entire Western system crumbles, deteriorates, sinks, and implodes

For those unable to make the trip to Vancouver last weekend for the Sprott Natural Resource Symposium, you won’t want to miss the summary and recap of keynote speakers from the event, including Rick Rule, Adrian Day, & reclusive billionaire Robert Friedland.
Full recap of the Sprott Natural Resource Symposium from Vancouver is below: 

coffinIf the worst Ebola outbreak in recorded history reaches the United States, federal law permitsthe apprehension and examination of any individual reasonably believed to be infected with a communicable disease“.
These individuals can be “detained for such time and in such manner as may be reasonably necessary“.
In other words, the federal government already has the authority to round people up against their will, take them to detention facilities and hold them there for as long as they feel it is “reasonably necessary”.
In addition, as you will read about below, the federal government has the authorityto separate and restrict the movement of  WELL persons who may have been exposed to a communicable disease to SEE if they become ill“.
Think that is a little extreme?  Think again.  
As NBC reports, Emory University Hospital, Atlanta will be treating a patient with Ebola in the next several days.

Now that everyone is blaming Russia – instead of the weather – for everything that is happening (Adidas blamed Russia for its poor results instead of the fact that its shoes suck) – I’m wondering when Obama is going to come out and tell us Russians killed Jesus.

Jim GrantIn this MUST WATCH interview with CNBC, the Interest Rate Observer’s Jim Grant explains why the 2 greatest opportunities for investors right now are Russia & gold. 
Gold, to me is 
a very sound inoculation against the harebrained doctrine of modern central bankers.  If you harbor doubts about the efficacy as do I of five years of monetary printing via quantitative easing & suppressed interest rates, and wonder how this unprecedented experiment is going to pan out, you can do worse for yourself than to hedge (with gold) from an unscripted monetary outcome.”  

Grant concludes that investors should own gold because:  “
It stands to benefit from the demonstrated, as opposed the theoretically likely, crack up of the current monetary arrangements.”
Grant’s full interview on opportunities in Russia & Gold is below: 

Did you know that 77 million Americans have unpaid debts that are “in collections” and that Congress is actually thinking about letting post offices offer payday loans?
We live in a country where almost everyone is drowning in debt and where most people are either flat broke or very close to flat broke.
The truth is that what we are experiencing right now is about as good as things are going to get for the U.S. economy. When the next crisis arrives, all of the numbers in the list  below are going to rapidly get a lot worse.
So enjoy the rest of this “bubble” while you still can.   It certainly will not last for too much longer.

bubbleA literal avalanche of homes in higher end areas are hitting the market.  In the words of a colleague:  ” The Zillow map of Castle Pines has so many red “for sale” marks on it that it looks like a bloody war zone.”
The Pending Home Sale index for existing homes as compiled by the National Association of Realtors was released Monday.  It showed an unexpected drop of 1.1% vs. May and it was down 7.3% vs. last June.
What’s shocking about the May to June comparison is that June is supposed to be the strongest month of the year for home sales.

Silver Megaphone PatternsPresident Nixon closed the “gold window” in August 1971.   That decision enabled the exponential growth of debt, paper currencies, and prices.    The process is simple and clear.  Remove the gold backing from the dollar, enable the creation of nearly unlimited dollars and debt, many more dollars chase somewhat more goods, prices increase, proclaim it is “all good” and then create even more dollars and debt. 
So what about silver?
Silver prices have increased but in a disorderly manner.  Rather than focus on details, examine the big picture – 43 years of monthly price data in one chart – represented by four megaphone shaped price patterns.
My interpretation is that zone 4 – a long and aggressive move upward – is still in progress, with a  round number target for silver is $100 or more in 2016 – 2019.